PDV America, Inc. and Subsidiaries - Page 24

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               We also disagree with respondent’s contention that property            
          with a relatively long economic useful life is necessarily                  
          designed to remain permanently in place.  In Estate of Morgan v.            
          Commissioner, 52 T.C. at 481, 483, where the floating docks had             
          an estimated useful life of 20 years, or longer with periodic               
          part replacements, we concluded that the floating docks were not            
          inherently permanent.  Similarly, in Film N’ Photos, Inc. v.                
          Commissioner, T.C. Memo. 1978-162, the photo merchandising huts             
          at issue were not inherently permanent, even though they could              
          remain at the same location for 20 years or more and had a useful           
          life of 50 years or more.  See also Fox Photo, Inc. v.                      
          Commissioner, supra (1-hour photo labs had an estimated useful              
          life of 50 years but were not designed to remain permanently in             
          place).                                                                     
               Respondent further asserts that the internal roof support              
          columns in the tanks reflect permanence.  When relocating an                
          intact tank with internal roof support columns, internal bracing            
          is required to support the tank floor and roof.  The bracing is             
          not part of the tank’s design and must be added to a tank before            
          moving it.  However, when using the dismantling and                         
          reconstruction procedures for relocating tanks in API Standard              
          653, the internal bracing is not necessary.                                 
               In Fox Photo, Inc. v. Commissioner, supra, the 1-hour photo            
          labs’ steel frames were reinforced beyond regular support                   






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